Building a Strong Credit File (By Making Timely Payments)when You

question 42

Multiple Choice

Building a strong credit file (by making timely payments) when you in college and beginning your career is

• A) unwise as you will have to pay interest on the deferred amounts.
• B) wise so that when you are ready to make major purchases like a car and a home, you can obtain favorable interest rates.
• C) unwise; only buy what you can afford to pay cash for.
• D) Both A and C are correct.

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Definitions:

Factors Of Production

Factors of production are the inputs needed for the creation of a good or service, including land, labor, capital, and entrepreneurship.

Unemployment Of Resources

Unemployment Of Resources refers to a situation where factors of production, such as labor and capital, are not being used in the production process.

Production Possibilities Curve

A graphical representation of the maximum quantities of two goods or services that an economy can produce when utilizing its resources fully and efficiently.

Circular Flow Diagram

A visual model of the economy that shows how dollars flow through markets among households and firms, illustrating the interdependencies of economic activities.